Bogleheads

[rene]

My company offers me the possibility of getting into a HSA ... PLUS they will cover $1000 of the $1250 deductible.

Am I correct to think that this is a no brainer and that I should join the HSA to increase my tax-deferred holdings?

[nisiprius]

Since you say "offers" I assume you also have the possibility of regular health insurance. It's only a no-brainer if

a) the coverage on the policy offered with the HSA is identical in every respect except the deductible to the coverage you have in your current plan, and

b) you've verified with your health care providers that when you pay for services yourself they'll charge you the same heavily-discounted rate that they charge the insurance company under the current plan.

I agree that the deal sounds pretty good... almost in the too-good-to-be-true class.

In effect you're saying that the only difference between the HSA and non-HSA plans is the deductible, and that the deductible is effectively only $250 a year because your company will pay the thousand. You have to ask what economic magic would make the HSA plan plus paying most of the deductible an attractive proposition to your company.

Is there some other catch? Can you opt back into the regular plan at a future date if you don't like the HSA plan? Does the company pledge to pay $1000 of the deductible indefinitely?
_________________
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

[dothemontecarlo]

[mvm]

It's a no-brainer.

I already have over $25,000 invested in my HSA tax-deferred account. PLUS, a tax write-off of $5,800 every year!

Don't miss this opportunity.

[allenmickers]

[rene]

All of the money goes to my same plan as the retirement plan... which means I have not great but decent choices. I guess the 2700 deduction is something not to be missed

[allancoleman]

The 2007 " family coverage " contribution limit was $5,650 plus the $800 " catch - up " provision for those 55 and older . The 2008 family coverage deposit is $5,800 plus $900 catch - up .

2007 " self - only " coverage was $2,850 plus $800 catch - up and for 2008 the self coverage limit is $2,900 plus $900 for catch - up .

Wife and I now have over $20k in our taxfree HSA account and expected to go to $30k by the time I'm disqualified for Medicare next year and the wife goes on Medicare in 2011 .

[stan1]

You really have to look at the coverage and limitations offered by the HDHP policy, and weigh that against what your family's needs are. This is not strictly a financial decision since the quality of care your family receives if they are unexpectedly sick is at stake. I'm not trying to talk anyone out of HDHP coverage, just make sure you consider all the implications for your family. Policies vary greatly, and some individuals may have many other health insurance choices available.

[grabiner]